Intel’s Mixed Q1 Results and Uncertain Future: Hold Rating Maintained Amid Challenges

Stacy Rasgon, an analyst from Bernstein, maintained the Hold rating on Intel (INTC – Research Report). The associated price target remains the same with $21.00.

Stacy Rasgon has given his Hold rating due to a combination of factors that reflect both Intel’s current performance and future challenges. Intel’s Q1 results surpassed expectations, with revenue and earnings per share exceeding forecasts, largely due to higher-than-expected volumes and strong demand from hyperscalers. However, the outlook for the next quarter is weak, with projected revenues and margins falling short of market expectations, primarily due to tariff and macroeconomic uncertainties.
Despite some positive steps taken by Intel’s new CEO, such as cost-cutting measures and cultural shifts, the company faces significant hurdles. These include exposure to tariffs, a challenging macroeconomic environment, increasing competition, and issues with their AI and product roadmaps. The turnaround required for Intel is substantial, and while there is potential for improvement, the path forward is fraught with difficulties. Therefore, Rasgon maintains a cautious stance, suggesting that investors may not see immediate returns, and thus, a Hold rating is appropriate.

In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $23.00 price target.